Campbell Said to Be Among Final Contenders for Bolthouse

July 3 (Bloomberg) -- Campbell Soup Co. is among the final
bidders for Bolthouse Farms Inc., the vegetable-juice maker
being auctioned by Madison Dearborn Partners LLC, according to
people with knowledge of the matter.

Bolthouse asked for final bids this week to complete a sale
in the next couple weeks, said two of these people, who asked
not to be identified as the process is private. Campbell is
vying with private-equity firms such as Blackstone Group LP, and
bids came in at $1.5 billion to $2 billion, the people said.

Buying Bolthouse would help the world’s largest soupmaker
bolster its U.S. beverage division, which makes the V8 brand of
juice and accounted for about 10 percent of sales in the year
ended July 31. That unit was Camden, New Jersey-based Campbell’s
fastest-growing last quarter, generating $208 million in
revenue.

Previous management at Campbell had considered bids for
Bolthouse and passed, said one of these people. Campbell Chief
Executive Officer Denise Morrison, who took over last year, is
more interested than predecessor Doug Conant was, said the
person.

Campbell may be interested in buying Bolthouse to make the
company less reliant on its core soup business, Jack Russo,
analyst at Edward Jones & Co. in St. Louis, said in a phone
interview. Morrison has been open to growing through
acquisition, Russo said.

“They are looking to lessen their dependence on soup
because it has been a tough category,” Russo said. “This deal
fits in with the V8 business.”

Beverage Sales

Campbell’s U.S. beverage business boosted sales 2 percent
to $593 million through the nine months ended April 29. Its U.S.
Simple Meals business, which includes soup, has declined 2
percent to $2.3 billion during the same nine months.

Private-equity firms such as Ares Management LLC and Advent
International Corp. also explored bids for Bolthouse, said one
of these people.

Anthony Sanzio, a spokesman for Campbell, declined to
comment, as did officials at Blackstone, Madison Dearborn, Ares
and Advent.

Campbell rose 0.1 percent to $33.43 at 1:04 p.m. in New
York. The shares gained 0.5 percent this year through July 2.

Madison Dearborn’s Investments

Bolthouse’s roots date back almost a century, when the
family of the same name began commercial vegetable farming in
Michigan, according to the company’s website. Bolthouse’s annual
earnings before interest, taxes, depreciation and amortization
are more than $150 million, said two people familiar with the
matter. The carrot business provides about two-thirds of the
profit, said these two people.

Goldman Sachs Group Inc. and Credit Suisse Group AG are
advising Chicago-based Madison Dearborn on the sale, people
familiar with the matter have said. Officials at Goldman Sachs
and Credit Suisse declined to comment.

Madison Dearborn, founded 20 years ago in Chicago, acquired
Bolthouse in 2005, according to data compiled by Bloomberg. The
buyout firm’s other investments have included pay-as-you-go
wireless carrier MetroPCS Communications Inc. and LA Fitness
International LLC, a North American chain of gyms.